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Why Can’t I Refinance My Auto Loan?



Before you lose control of a car loan that you’re struggling to afford, refinancing may be able to help. However, not every borrower or loan situation qualifies for refinancing. Let’s take a look at some things that could stand in your way.

7 Roadblocks to Refinancing Your Car Loan

There are a lot of reasons why you might want to refinance, but you first have to qualify. Here are a few things that might be standing in your way of refinancing:

  1. Why Can't I Refinance My Car Loan?Your loan is too new. If you haven’t had your loan for at least a year, lenders may not even consider drawing up a new auto loan contract with you.
  2. Your credit score is bad or hasn’t improved. You don’t necessarily need good credit to refinance if you originally took out a bad credit car loan, but your credit score has to have improved. If your loan was started with good credit that’s now lower than before, don’t expect to be rolling in refinancing deals, either.
  3. You’re behind on your payments. If you’re not current on your loan, you’re not going to be considered for the process. Think of refinancing as a reward for working hard to get through the rate and term you didn’t want.
  4. You owe too much money. Refinancing replaces your existing contract with a new loan on the same vehicle. However, if you initially paid too much money for a car, a lender isn’t likely to want to shell out a huge chunk of change for an asset that isn’t worth that much.
  5. You owe too little on your loan. If you’re almost done paying off your loan, a lender may not want to take on the risk of refinancing you. There’s no reward in refinancing if you’re lowering your interest rate or extending your loan term just so you can pay off the final few hundred dollars of your loan.
  6. Your vehicle doesn’t meet lender standards. Not all cars, trucks, or SUVs qualify for refinancing. Most lenders have a set age range and mileage limitation that vehicles have to meet. Typically, cars can’t be more than 10 years old or have more than 100,000 miles on them, but this varies by lender.
  7. There’s negative equity in your vehicle. In order to be eligible for refinancing, your car has to be worth more than you owe on its loan. This is equity. If you owe more than the value of your vehicle, you need to make enough payments to at least have the same value in your car as you owe on the loan.

Why Refinance Your Auto Loan?

If you take out a bad credit auto loan, chances are your interest rate is a lot higher than you’d like. Interest is the cost of borrowing money, and the higher your rate, the more it can cost you to finance a vehicle. Higher interest rates lead to higher overall car loan costs, and if your loan isn’t managed correctly, you could end up owing much more for a vehicle than it’s worth.

Monthly cost, rather than overall cost, usually ends up being the reason for refinancing a car. When you need to save money month to month, lowering your interest rate through refinancing is a good way to start. With a lower interest rate, you lower your monthly payment and your overall loan cost.

The other option you typically have is to extend your loan term. This results in a lower monthly payment, but your overall loan amount can actually increase if you go this route without getting a lower interest rate.

If You Can’t Refinance Now…

Refinancing isn’t always in the cards for everyone, but if you’ve come up against a hurdle, sometimes all it takes is a little time. Many of the roadblocks to refinancing can be overcome if you simply wait until you meet the qualifications standing in your way.

For instance, if you want to refinance but your credit score hasn’t improved much, it hasn’t been a year since you took out your original loan, or if you have negative equity, all of these roadblocks can be overcome if you simply continue making loan payments. In some cases, however, waiting for your loan to catch up with refinancing requirements may not be an option.

The solution for getting out of an auto loan that’s giving you trouble in these cases could be to trade in your vehicle for something more affordable. Trade-ins can be wonderful options for getting into a lower cost car loan that may have better rates and terms than your original loan.

More good news is that you don’t have to wait until there’s equity in your vehicle to trade it in. You still have to be current on your payments, but, many times, lenders can roll negative equity into another loan if necessary. Be careful doing this though, and know that you still have to pay for the negative equity – it’s just included in the cost of your next auto loan.

Clearing the Hurdles for a Car Loan

Even if roadblocks are standing between you and refinancing, we can help you clear the path toward your next car loan by connecting you with a local dealership that’s signed up with subprime lenders. These lenders know how to work with people in unique credit situations.

At Auto Credit Express we’ve been matching consumers to special finance dealerships for over 20 years, and we want to help you, too. To get started, simply fill out our fast, free, and easy auto loan request form.

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Warner Robins GA Credit Repair Finance Score Improvement Service Launched



New credit repair services have been launched by the expert team at Fresh Start Consumer Services. They work with clients in Warner Robins, GA and the surrounding areas.

New credit repair services have been launched by the expert team at Fresh Start Consumer Services. They work with clients in Warner Robins, GA and the surrounding areas.

Fresh Start Consumer Services has launched a new credit repair service for clients looking to improve their financial future. Interested parties can sign up for credit consultations, in-depth credit analysis, credit recommendations and more.

Full details can be found at:

The newly launched services are designed to ensure clients can repair bad financial credit history, track their improvement campaign in measurable ways, and secure a better future for themselves and their family.

Clients can work with Fresh Start Consumer Services to clean up their past. This is achieved by working with the major credit bureaus and creditors to challenge the negative report items that affect the credit score.

Based in Warner Robins, GA, the expert team at Fresh Start Consumer Services is passionate about helping citizens to improve their credit score to give them more buying power. As a result of this, clients are able to secure more options in life.

The team understands that sometimes bad things happen to good people, and their services are designed to ensure that clients can get the most out of life. They also realize that a bad credit score can harm clients’ quality of life – and can be a difficult situation to get out of.

Fresh Start Consumer Services offer courses in credit repair and restoration, budget management, credit education and purchase assistance. Clients get easy access to their account 24/7 for live status updates on improvements, allowing them to fine-tune the management of their credit score.

Service options include personalized dispute options to fit each clients’ exact credit repair needs, an experienced case analyst and case advisor working personally with them throughout the process, custom dispute letters, and more.

For clients, there are a number of reasons to work with a credit repair specialist. Clients are able to secure significant savings on interest rates, attain better terms on loan products, and get access to the best credit card deals. They also gain access to more housing options.

The team states: “Fresh Start Consumer Services offers a unique combination of services that gives our clients the quality of life they deserve. We specialize in helping our clients achieve qualifying credit and the financial health they desire.”

Full details can be found on the URL above.

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Is it Possible to Trade In a Car Early?



Yes, early trade-ins are possible when you finance a vehicle. In fact, there’s no set time frame on trading in a car. Most dealers won’t take a trade-in that’s too fresh, though, and it’s best to wait until there’s equity in your vehicle before you try to trade it in.

What’s a Trade-In?

When you trade in a car, you’re essentially selling it to a dealership and financing something else from their lot, without the hassle of selling and buying with separate transactions. There are no hard-and-fast rules about how and where you have to trade in your vehicle.

However, it’s beneficial to shop around and see which dealers can give you the best price, but you shouldn’t just head to a car lot and ask what they’re willing to offer you. When the time comes, there are several steps you may want to take to get ready for the trade-in process, especially if you’re looking to trade in early before you’ve had the chance to close the equity gap.

Trading In Early and Equity

Are Early Trade-Ins Possible When You Finance a Car?When you’re trading in a vehicle soon after you’ve financed it, you’re more likely to be in a negative equity position – owing more on your auto loan than the car is worth.

This is especially true if you financed a new vehicle, or a certified pre-owned car. Newer vehicles depreciate faster than used ones, which have typically already seen their biggest drop in value.

Depreciation is the loss of value over time and it can’t be stopped. It can be slowed, though. The best way to do this is by using a large down payment when you finance. This reduces the amount you have to borrow, and leaves you owing a price closer to what the car might cost after you drive it off the lot. New vehicles typically lose around 10% of their value as soon as they touch the road.

If you don’t have the equity to recoup your investment in a car, you have to make up that difference out of your own pocket. It’s much easier to trade in a vehicle that can pay for itself, but this isn’t always possible when you’re trying to do so early.

Preparing Your Early Trade-In

When you know that you’re starting with a deficit on your trade-in, it’s a good idea to be prepared to get the most you can. Clean the car thoroughly, both inside and out, and make sure to fix any minor damage that may have occurred in the short time since you took out your loan.

Getting the vehicle detailed and fixing major mechanical issues isn’t likely to result in a worthwhile increase to the cash in your pocket, so don’t go overboard. Remember, you want to make as much money on this trade as you can, and it’s probably cheaper for the dealership to fix any large issues.

Before you set foot in a dealer to get your trade-in appraised, it’s a good idea to know approximately how much your car is worth. You can find this out by going to online valuation sites such as Kelley Blue Book or NADAguides. Be sure to be honest when you’re inputting information, since it’s the only way to get an accurate estimate of possible value.

Shopping for Trade-In Values

Once you have the estimates (which you should print or save to your phone), it’s time to take your trade-in to get looked at. Taking it to a few different dealerships is a good way to find the best deal you can.

We recommend taking your early trade-in to at least three different dealers, making sure at least one of them is a franchised dealership that sells your vehicle’s brand. A franchised dealer that sells your car’s brand may be more likely to offer a higher price.

Depending on your credit situation, it’s likely a good idea to ensure you’re trying to trade in your vehicle to a dealership that can work with your situation, especially if you have poor credit. And that’s where Auto Credit Express can come in handy.

We have a nationwide network of special finance dealers that are signed up with subprime lenders who can help people in many different types of credit situations, including bad credit, no credit, and even bankruptcy.

The process is easy to get started – just fill out our free auto loan request form. We’ll match you to a local dealership that can get you started on the financing you need after your early trade-in.

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Jackson receives financial reporting award



JACKSON, Mich. (WILX) – The City of Jackson is getting international recognition for its transparency in financial reporting.

The Government Finance Officers Association of the United States and Canada (GFOA) awarded the Certificate of Achievement for Excellence in Financial Reporting to Jackson for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2019.

The CAFR was judged by an impartial panel to meet the high standards of the program. Standards include demonstrating a constructive “spirit of full disclosure” to clearly communicate the financial story of the City and encourage users and groups to read the CAFR. The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting.

“This is great for the City as a whole because it improves our bond rating,” said City Manager Jonathan Greene. “We believe this award will help our residents understand the work we do to make the City’s finances transparent and easy to understand.”

Bond Ratings are letter grades assigned to bonds that indicates good or bad credit for an entity like the City of Jackson. By having a strong bond rating cities are granted opportunities to pay back interest at lower rates.

The CAFR can be viewed HERE.

Copyright 2020 WILX. All rights reserved.

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